Question

All, think about an organization you work for (now or before). Do you feel that just one cost center is needed in a healthcare organization? Is it beneficial to have more than one cost center, or to have cost centers grouped together?

Answer 1

There should be more than one cost center in a heathcare organization. It is beneficial to have different cost centres in a healthcare organization because-

1. There are number of verticals in a healthcare organization which adds to revenue generation and cost expenditure. In order to keep a track, target and cap on the expense as well as revenue generation.

2. Periodic target attainment can be tracked clearly and responsibilities for monitoring and improving the same can be assigned to specific persons.